How to submit Form 15G for a fixed deposit?

Did you know you can submit Form 15G and be exempt from TDS? Individuals below the age of 60 years are eligible to submit the form and claim the exemption. You can submit Form 15G online to avoid inconvenience. Very minimal documentation is required to file Form 15G.

The interest earned on a Fixed Deposit (FD) is fully taxable. Banks and Non-Banking Financial Companies (NBFCs) have a Tax Deduction at Source (TDS) for this investment. Some people need not pay this TDS as they do not fall under the tax bracket. This is where form 15G comes into play, helping banks and NBFCs understand that there should be no tax deductions on the fixed deposit.

To better understand what form 15G is and who needs to submit it, we need to explore the features and components of the form. Keep reading to know if you are eligible and how to fill form 15G:

What is a Form 15G?

When you earn more than Rs. 10,000 interest per annum on a fixed deposit, the bank or NBFC will deduct TDS. However, if your income falls below the minimum taxable limit, you can submit Form 15G. This is a way to request the financial institution not deduct any TDS on the deposit. Form 15G is a self-declaration form that an investor has to submit to the bank or NBFC.

If the interest earned on a fixed deposit is more than Rs. 10,000 for a financial year, you will have to pay TDS on the accumulated interest. For senior citizens, the limit is Rs. 50,000. This form is also available online, which helps investors avoid the hassles of filling out the form physically.

Who can submit Form 15G?

The eligibility criteria for submitting Form 15G are easy and convenient. But there are certain conditions to submitting Form 15G. Here are the requirements you need to keep in mind while applying for Form 15G:

• You need to be a resident citizen of India.
• You can fill Form 15G as an individual, Hindu Undivided Family (HUF) or Trust, but not as a company or firm.
• Your total income tax should be nil, or the interest you receive on the FD should be below Rs. 10,000.
• You should be below 60 years of age.

How to Submit Form 15G?

The form can be submitted in its physical form or can be filled and submitted online. The investor will receive a Unique Identification Number (UIN) for an online form. If you have multiple deposit accounts across multiple branches, you will need to send this form to each account. If you delay the submission of Form 15G, the bank will charge TDS on your deposit and will provide the certificate towards the end of the year.

Form 15G consists of two pages, page A and page B. You must ensure you have the required documents while filling in your details in the form. Here is what you need to fill in:

• Page A:

• Name and PAN (Permanent Account Number) details
• The details of the financial year
• Address and contact information
• Details about income will include nature and the section under which it is deductible
• A declaration stating that the details provided is accurate and not misleading

• Page B:

• Name of individual who has to pay the tax
• PAN and TAN (Tax Collection Account Number) details
• Aadhaar Card details
• Address and Contact details
• Amount of income paid

Difference Between Form 15G and 15H

The most crucial difference between the two forms is that Form 15H is only for senior citizens, and Form 15G is for individuals below the age of 60 years. Senior citizens can earn interest of up to Rs. 50,000 before tax is charged on the accumulated interest from an FD.

A tax-saving deposit can also be used to save tax on a fixed deposit. You can claim up to Rs. 1.5 lakh with a tax-saving FD, but the interest amount still is taxable. A Shriram FD can give you one of the highest interest rates, up to 8.75% per annum, including 0.50% interest for senior citizens. This way, senior citizens can earn higher interest rates and won’t have to pay TDS on the FD interest if the total income in a year is less than Rs. 50,000.

Conclusion

Form 15G can help you save on TDS if you fall under the suitable eligibility and you remember to submit the required form on time before the bank charges TDS. It would be best if you remembered that you must be below 60 to submit form 15G. Ensure you have a copy of your PAN details so that you can fill and submit the document without any hassles. The process is even easier and more convenient if you fill out the form online.

Key Highlights:

• Form 15G can be submitted to request the financial institution not to deduct TDS on your fixed deposit.
• It can only be filled by those who are under the age of 60 years old.
• You can fill out Form 15G online to avoid the hassle of submitting it physically.
• Only a few documents are required to submit Form 15G.